immobiliare

Rental opportunities on the rise. From Milan to Florence, it’s the perfect time to invest in Italy (Immobiliare.it)

By Columbus International,19 March 20249 November 2024

The rental costs in the main Italian cities have become so high as to exclude both individuals and families with a single income. It’s interesting to note that it’s not Milan, but Florence, that emerges as the least accessible city for those seeking a two-room apartment for rent. And this makes it a great asset if you’re looking for a secure real estate investment.

According to insights from Immobiliare.it, the proptech company affiliated with Immobiliare.it, the average monthly amount a person would need to allocate for rent – ideally not exceeding 30% of their net income – has been compared with the actual average rent demanded for a two-room apartment in major urban centers. In Florence, for instance, the average monthly rent for a two-room apartment stands at 1,066 euros, yet the average budget available for a single individual barely surpasses 480 euros. Shockingly, only 0.5% of the two-room apartments listed in the market are affordable for solo renters. Following closely is Naples, where the average monthly rent climbs to 850 euros, but given the municipality’s average income, a single person can only afford around 415 euros for rent, less than half of the required amount. Consequently, the accessibility rate falls below 1%.

Milan boasts the highest rental rates among the cities under scrutiny, with rents exceeding 1,320 euros per month for a two-room apartment, while the budget available to a single individual, at 650 euros, falls significantly short. A similar situation unfolds in Venice, where despite an average monthly rent of approximately 880 euros, a single person can only afford 430 euros, less than half of the required sum. Moreover, while in Milan only 0.8% of the two-room apartments on offer are within reach for solo renters, the situation in Venice is even direr, with no affordable options available. Single individuals face challenging rental conditions in Bari and Bologna as well. In Bari, where the rent for a two-room apartment has surged by nearly 200 euros per month over the past year, reaching 800 euros, the average salary fails to meet the required amount, hovering around 430 euros. Meanwhile, in Bologna, the average rent stands at about 925 euros per month, exceeding what a person could realistically pay by 510 euros. In Rome, there’s a glaring disparity between the rent demanded by landlords and the budget available to renters, with a gap of over 70%. Landlords request an average monthly rent of 890 euros, while the budget of a single individual barely reaches 520 euros. Verona fares slightly better, with an average monthly rent of 770 euros, aligning closer to the budget of around 480 euros that a resident can allocate for rent. In the two major Sicilian cities, Palermo and Catania, the gap between the rent demanded by landlords and the budget of single renters hovers around 45%. In both cities, the monthly rent slightly exceeds 580 euros, while renters can only afford around 400 euros. In municipalities like Turin and Genoa, where the available budget for renting a two-room apartment closely matches the rent demanded, there’s a more balanced situation. In Turin, the average monthly rent slightly exceeds 600 euros, whereas a single individual can afford around 500 euros. Similarly, in Genoa, the gap between the average monthly rent of 550 euros and the personal resources of 450 euros is narrower. Notably, Genoa remains the city with the highest accessibility to two-room apartments for single renters, with 38% of the available stock.

Antonio Intini, Chief Business Development Officer of Immobiliare.it, commented: “The analysis reveals that the rental market in our major cities offers few sustainable options for those with a single income. In most cases, single individuals must allocate at least 50% more than the considered sustainable budget for rent, if not double. Considering the potential for further rent hikes, it’s imperative to reflect on the future of our main urban centers, which are becoming increasingly inaccessible to new generations, forcing them to seek housing solutions in the outskirts and potentially weakening the socio-economic fabric of the cities.”

Source: Monitor Immobiliare

Riding the Real Estate Rollercoaster: New York City Market Trends Unveiled

By Columbus International,11 March 2024

Here are the latest developments in the New York City real estate market.

In the current landscape of the New York City housing market, the equilibrium between buyers and sellers holds significant importance. With a consistent decrease in housing inventory and a rise in median prices, the market tends to favor sellers. The limited availability of homes places sellers in advantageous positions, potentially leading to more favorable deals. However, this doesn’t necessarily translate to a gloomy outlook for buyers. The increased demand and fluctuating market dynamics offer opportunities for those looking to make strategic investments in real estate. The surge in home prices in New York reflects the impact of dwindling housing inventory and heightened demand. Consequently, the prevailing trend indicates that home prices aren’t declining but rather experiencing growth, signaling a robust market with the potential for lucrative returns for sellers.

The year 2024 began much like its predecessor, with low housing inventory and fluctuating interest rates around 6.5 percent, as reported by the New York State Association of REALTORS. The average rate on a 30-year fixed-rate mortgage saw a slight decrease from 6.82 percent in December 2023 to 6.64 percent in January 2024. However, compared to the same period last year, the interest rate has shown an increase from 6.27 percent, highlighting the dynamic nature of the real estate market. One notable shift in the market is the continued decline in housing inventory, persisting for 11 consecutive months in year-over-year comparisons. Across New York, the inventory of homes for sale decreased by 10.2 percent, dropping from 39,544 homes in 2023 to 35,492 units in 2024. This limited supply presents challenges for buyers but also creates an environment where sellers may find opportunities to capitalize on the scarcity of available homes. New listings experienced a modest decline of 1.5 percent, totaling 9,279 in January 2024 compared to 9,423 in the same month of the previous year. Closed sales witnessed a more significant decrease, dropping by 3.8 percent from 7,486 to 7,203 homes in January 2024. Conversely, pending sales increased by 8.9 percent, indicating a potential rebound and heightened activity in the coming months. January saw a 6.7% increase in the number of homes entering into contracts, marking a positive turn as buyers returned amidst declining mortgage rates. This surge, slightly higher than the average over the past five years, is attributed to the drop in mortgage rates during November and December, enticing buyers back into the market post-year-end holidays. However, despite this uptick, challenges remain. Highly-priced homes are staying on the market for longer periods, keeping the city’s median asking price elevated.

Elevated asking prices, coupled with rising mortgage rates, are prompting sellers to make concessions to attract buyers, illustrating a nuanced market scenario. As of January, the median asking price in NYC stood at $1.095 million, reflecting an 11.7% increase from a year ago. This uptick is largely due to a slowdown in the luxury market, where homes priced at $4.975 million and above are taking longer to sell. The median asking price in Manhattan rose by 8.4% year-over-year to $1.68 million, indicating a resilient market experiencing notable shifts. While luxury listings in Manhattan witnessed an increase in median asking prices, the typical luxury listing received only 93.2% of its initial asking price, indicating a shift in power from sellers to buyers at the highest end of the market. In Brooklyn, where inventory is limited, the median asking price surged by 16.8% to $1.05 million. Meanwhile, Queens offers a more affordable option, with a 4.2% year-over-year increase, resulting in a median asking price of $624,900. The NYC housing market grapples with the aftermath of elevated mortgage rates and median asking prices, limiting the pool of potential buyers. While the monthly mortgage payment on a median-priced home rose by 16.1% year-over-year to $5,619 in January, the median asking rent increased by just 0.1% to $3,500. With a considerable number of potential buyers still on the sidelines, those who can afford to stay in the market now have more room for negotiation. The median asking price for homes entering into contracts in January was $925,000, 15.5% lower than the overall median asking price of homes on the market. This disparity indicates a market where more affordable homes are gaining traction among buyers, while the luxury segment experiences a slowdown. Despite the recent decline in mortgage rates, the outlook for the New York City housing market remains complex. Seller concessions, aimed at attracting buyers, have become more prevalent. In September 2023, when mortgage rates were above 7%, 2.7% of for-sale listings mentioned seller concessions. Despite a subsequent decline in average mortgage rates to 6.7%, concessions in January held steady at 2.3%, showcasing a significant increase from the 1.4% average in 2021.

Regarding negotiations, buyers are finding more areas to maneuver. NYC sellers are increasingly willing to offer concessions explicitly in their listings, helping to reduce closing costs for buyers without reducing the asking price. One notable concession gaining popularity is the rate buydown, with 1.7% of sponsor condos offering this option in January, a significant increase from the 0.1% average in 2021.

Shore Club Stunner: $120M Penthouse Sets Record as Miami’s Priciest Pad

By Columbus International,11 March 2024

An extraordinary ocean-view penthouse in Miami Beach is set to be sold for a staggering amount exceeding $120 million, as reported by the Wall Street Journal. If finalized, the transaction would surpass previous records, making the condominium the most expensive ever sold in the Miami area. Situated within the prestigious Shore Club Private Collection, this lavish unit boasts a living space complete with terraces and a private rooftop pool, offering unparalleled luxury, comfort, and breathtaking ocean views. The identity of the buyer remains a mystery as the developers, the Witkoff Group and Monroe Capital, have chosen not to comment, fueling speculation. Real estate record-breaker and billionaire hedge fund magnate Ken Griffin had previously set a record for Miami condos in 2015 when he acquired two penthouses at Faena House for $60 million. Griffin later sold those units for a lower price: $46.2 million. His passion for high-value real estate transactions continued in 2022 with the purchase of the waterfront property at Adrienne Arsht in Coconut Grove, Miami, for an incredible sum of $106.87 million, marking a historic moment: the first nine-figure residential sale ever in the city. This recent monumental sale underscores an unprecedented surge in Miami’s luxury real estate market, with affluent individuals eagerly vying to secure their piece of paradise.

The Shore Club redevelopment project has been in the works for years, involving the transformation of two iconic hotels – the 1940s-era Shore Club Hotel and the historic Cromwell Hotel, a gem of Art Deco architecture from the 1930s. Designed by esteemed architects Robert A.M. Stern, the development features 49 residences spread across the original Cromwell Hotel and a new imposing structure rising above the beach. Additionally, an ocean-facing standalone villa and a luxurious five-star resort managed by Auberge Resorts Collection are set to enhance the complex. Sales of Shore Club apartments began early last year, with prices ranging from approximately $6 million to $40 million, excluding the jewel penthouse. Excitement is palpable for the project’s completion (expected in 2026). Kobi Karp Architecture & Interior Design, in collaboration with RAMSA, is the firm responsible for the architecture. The interiors, overseen by RAMSA, will embody a yacht-inspired aesthetic, featuring a serene color palette evocative of the surrounding natural elements.

Photo via The Boundary (Rendering)

Record number of cash offers show New York property is only for the rich

By Columbus International,7 March 2024

The latest data reveals a striking trend in Manhattan’s real estate landscape: a surge in cash purchases accounting for over two-thirds of home sales last quarter, marking a record high. The driving force behind this shift is the soaring mortgage rates, which have soared to around 6 per cent, dissuading all but the wealthiest buyers from taking on loans.

Pamela Liebman, CEO of Corcoran, a prominent real estate brokerage, highlighted this phenomenon, stating that nearly 70 per cent of Manhattan properties were acquired without mortgages in the final quarter of 2023, a significant leap from the 55 per cent seen in the same period in 2022. High mortgage rates are creating a significant barrier for potential buyers without substantial financial resources, leading many to opt for renting instead. Corcoran’s report further underscores this trend, indicating a 4 per cent increase in new leases in Manhattan and Brooklyn in January 2024 compared to the previous year, alongside a record median rent of $3,950.

The reluctance to incur mortgage debt has led to a “void in the middle” of the property market, with affluent buyers dominating while those unable to pay cash face challenges amid escalating rents. The median sales price for Manhattan apartments reached $1.15 million in the fourth quarter, up 5 per cent from a year earlier, approaching the record high of $1.25 million set in the second quarter of 2022. However, the pace of buying has slowed, with prime properties lingering on the market for extended periods, contrasting with more affordable markets like Charlotte, North Carolina, where homes sell rapidly.

Despite a slight uptick in transactions in January, Thomas Ryan, a property economist at Capital Economics, notes that the US housing market remains stagnant, with transactions significantly below the 2010s average. Erin Sykes, a real estate agent and economist, attributes the surge in cash purchases to buyers seizing opportunities amid rising mortgage rates, viewing them as an advantageous time to strike deals. The challenges facing buyers in New York are further compounded by a severe housing shortage attributed to regulations limiting rent increases and the expiration of tax incentives for new construction projects. Mayor Eric Adams has proposed converting obsolete office buildings into residential towers as a potential solution, although this presents technical and cost-related hurdles.

The supply crunch has significantly reduced vacancy rates, plummeting from nearly 4.5 per cent in 2021 to 1.4 per cent, exacerbating affordability concerns and pricing many out of the market. As Liebman aptly summarizes, New York’s housing market is currently facing rough terrain, posing significant challenges for aspiring buyers.

Ken Griffin’s Plan for a Miami Headquarters Finally Begins to Take Shape

By Columbus International,5 March 20249 November 2024

Ken Griffin, the billionaire founder of Citadel, caused quite a stir when he announced the relocation of his hedge-fund giant from Chicago to Miami. This move marked the most significant shift of any financial institution to the Miami scene. However, nearly two years down the line, the waterfront property Griffin secured for his planned $1 billion headquarters remains barren.

Citadel’s employees continue to toil away in temporary offices in the financial district, awaiting the fruition of their grand relocation plans. Nevertheless, the vision for Griffin’s Miami headquarters is gradually taking shape. Foster + Partners have been entrusted with the design, aiming to erect one of the city’s tallest skyscrapers. Renderings seen by The Wall Street Journal reveal plans for a luxury hotel atop the building, reflecting Griffin’s ambition to leave an indelible mark on Miami’s skyline. Gerald Beeson, Citadel’s chief operating officer, sees this as a pivotal opportunity to craft an iconic edifice befitting Citadel’s future.

Miami, often touted by Griffin as “Wall Street South,” is slated to be the firm’s primary hub, with expansions planned for New York City and London. Griffin’s conspicuous presence in Miami has drawn parallels to the impact LeBron James had on the city, attracting both businesses and wealth, and igniting pockets of growth in the real estate market. Born in Daytona Beach, Florida, Griffin founded Citadel in 1990, propelling himself into the upper echelons of the financial world. With approximately $58 billion in assets under management, Citadel stands as one of the globe’s foremost hedge-fund managers. Griffin’s high-profile acquisitions in Miami, including a record-breaking purchase of a sprawling estate in Coconut Grove, further underscore his commitment to the city. Before publicly announcing his relocation plans in 2022, Griffin quietly acquired a prime waterfront parcel on Brickell Bay, setting the stage for his envisioned headquarters. However, his collaboration with Sterling Bay, the initial developer, came to an abrupt end amid concerns about their ability to see the project through. Citadel’s subsequent search for an experienced developer with a solid track record in South Florida ensued.

Amidst uncertainties surrounding the fate of Citadel’s future headquarters, the company appointed Paul Darrah, formerly of Alphabet’s Google, as its chief workplace officer. Darrah, renowned for his role in developing Google’s corporate campus in Manhattan, aims to establish a temporary space within the 830 Brickell building. This interim solution will provide Citadel with a platform to experiment and refine its vision for the ultimate headquarters, a decision facilitated by the flexibility of the lease agreement. Griffin’s real estate endeavors, however, face challenges, with several acquisitions made but development hindered by existing structures, notably a condo building. Despite these hurdles, Griffin’s determination to establish Citadel’s presence in Miami remains unwavering, signaling a continued evolution of the city’s financial landscape under his stewardship.

La Lombardia è la regione con più transazioni in Italia

A million-dollar deal: Campari purchases headquarters in Milan from Bnp. All the latest information here (source: Sole24Ore)

By Columbus International,4 March 202411 March 2024

An operation that reinvigorates Milan’s real estate market, which has been declining since the beginning of the year. The transaction in question sees Campari as the buyer and Bnp Paribas Reim, an investment management company specializing in real estate and part of the Bnp Paribas Group, as the seller.

The real estate company has sold, on behalf of a managed real estate fund, an office building located at Corso Europa 2, a stone’s throw from Milan’s Duomo. Here, Campari will establish its headquarters. The transaction was completed for a sum of approximately 110 million euros, to which renovation costs are added. The building covers a total area of approximately 10,000 square meters, spread over nine above-ground floors and four underground floors. The building faces both Corso Europa and Via Larga. After the sale, the building will undergo renovation and modernization by the buyer, as it is currently divided into spaces previously rented to various Italian and international tenants.

Many of them have already left the building, including the Bpm branch, and soon Commerzbank and the Molteni store will follow suit. This will give rise to the new headquarters where Campari Group will move in 2027, as stated by the company. Currently, Campari’s headquarters is located in Sesto San Giovanni, in a complex designed by architect Mario Botta and inaugurated in 2009. Returning to the building on Corso Europa, it was purchased in 2016 by the real estate company of the banking group through the Fundamenta fund, paid 91 million euros at the time. The asset was sold by the Borromeo family, assisted in the operation by JLL Italia.

The Borromeo family remains active in the real estate sector also through Merope Asset Management, an investment and real estate development company founded and led by Pietro Croce, of which they hold 10%. “The sale of the asset on Corso Europa to an international and prestigious company like Campari demonstrates how Bnp Paribas Reim is able to offer high-level solutions in the active management of real estate investments,” commented Vincenzo Nocerino, CEO of Bnp Paribas Reim Italy at Sole24Ore. “It shows interest in a building with solid fundamentals and located in a strategic position in the center of Milan, the beating heart of a metropolis increasingly oriented towards Europe, essential characteristics for a property destined to host the headquarters of a large group.”

Rents Yield Like Never Before. Since 1998, Real Estate in Milan Appreciated by +130% (source: Tecnocasa Group)

By Columbus International,27 February 2024

Real estate investments are experiencing a steady increase, driven by stable returns that demonstrate gradual yet consistent growth over the years. The appreciation of property values has become a widespread trend, with double and triple-digit increases occurring in almost all regions over the past 25 years.

According to an analysis conducted by the Research Office of the Tecnocasa Group, in the first half of 2023, 19.6% of real estate transactions were made for investment purposes. This figure represents a slight increase compared to the same period the previous year, when the percentage was around 16.8%. Rising inflation is prompting more and more people to invest in bricks and mortar, traditionally considered an excellent form of investment.

The return of tourists has also contributed to revitalizing the real estate market, with an increase in purchases of properties intended for accommodation in both popular cities and tourist destinations. The analysis primarily focuses on the long-term rental market rather than seasonal rentals. The prospect of earning steady rental income induces greater caution among property owners, especially considering the current economic uncertainty and rising energy costs. However, annual rental yields remain attractive, with an average rate of around 5.2% for two-bedroom apartments of 65 square meters in major Italian cities. Among the metropolises, Genoa, Palermo, and Verona stand out for the highest yields, at 6.6%, 6.4%, and 6.3%, respectively.

Real estate investors are not only aiming for rental income but also for the growth in property value over time. In recent years, there has been a recovery in property prices, with a preference for areas characterized by the presence of universities, services, and urban redevelopment projects. Fabiana Megliola, head of the Research Office at Tecnocasa, emphasized that real estate investors are interested not only in rental returns but also and above all in the appreciation of the property value over time. Between 1998 and 2023, major Italian cities saw an average price increase of 46%. Milan recorded the highest appreciation, with an increase of 132.1%, followed by Naples with 72.1% and Florence with 71.2%.

Source: Sole24Ore

Miami’s Short-Term Rental Condo Boom: A Paradigm Shift in Urban Living

By Columbus International,12 February 20249 November 2024

Miami’s real estate landscape is undergoing a profound transformation, driven by a surge in short-term rental condos that are reshaping the dynamics of urban living across Downtown Miami, Brickell, Edgewater, and beyond. According to a report by the South Florida real estate firm ISG World, a staggering 8,467 short-term rental condos are planned across 26 projects in these areas, constituting a significant portion of the region’s development pipeline.

The rapid growth of short-term rental projects can be attributed to various factors, including economic and political uncertainty in Latin America. Craig Studnicky, CEO of ISG World, notes that developers are capitalizing on the influx of foreign buyers seeking to invest capital outside their borders, particularly amid volatile conditions in their home countries. With international buyers accounting for nearly half of home purchases in South Florida, these projects serve as attractive investment opportunities for individuals looking to diversify their portfolios. Studnicky highlights the exponential growth of short-term rental units in Miami-Dade and Broward counties, with developers seizing the opportunity to cater to the rising demand for flexible accommodation options. This surge in development underscores a “carpe diem” moment for developers, who have capitalized on the convergence of favorable market conditions to meet the evolving needs of residents and investors alike. Alicia Cervera, Chairman of Cervera Real Estate, emphasizes the increasing interest from American buyers in these projects, citing the affordability and flexibility offered by short-term rental condos compared to traditional housing options. With Miami’s population and property prices on the rise, there is a growing demand for smaller, more affordable housing solutions, making short-term rentals an attractive proposition for urban dwellers. Indeed, short-term rental condos are filling a void in the market by providing transitional homes for new arrivals to Miami, as well as serving as investment vehicles for those seeking to monetize their properties. With a wide range of amenities catering to both residents and travelers, these units offer a blend of convenience and luxury in prime urban locations.

Developers are responding to this demand by proposing a diverse array of projects with varying degrees of rental restrictions, catering to different preferences and investment strategies. From fully furnished turn-key residences to condo-hotels with limited occupancy rules, these developments offer options tailored to the needs of various buyers. One notable project, 600 Miami Worldcenter, has sold out its fully furnished units ahead of groundbreaking, underscoring the heightened demand for such offerings in prime locations like Downtown Miami. Similarly, the expansion of the Natiivo concept to Broward County reflects the broader trend of extending the reach of short-term rental condos beyond Miami’s borders.

While there may be some fluctuations in market demand, Studnicky remains optimistic about the future of these projects, citing the resilience of Latin American buyers and the allure of pre-construction investments. With interest rates becoming more favorable and construction financing more accessible, developers are poised to break ground on numerous projects, further reshaping Miami’s skyline and urban landscape. In conclusion, the proliferation of short-term rental condos represents a paradigm shift in Miami’s real estate market, offering investors, residents, and travelers alike a new way to experience urban living in one of the nation’s most dynamic cities. As these projects continue to evolve and expand, they are not only reshaping the physical landscape but also redefining the very essence of urban life in Miami.

Source: Bisnow

Barbie Cafe Buzz to Booming Developments: Wynwood’s Real Estate Rise

By Columbus International,8 February 2024

California-Miami Real Estate, a golden ticket!

Introducing the new Malibu Barbie Cafe, a lively pop-up restaurant in Wynwood, Miami, celebrating the spirit of 1970s Malibu Barbie. You can immerse yourself in a nostalgic culinary adventure, carefully crafted to honor the legacy and influence of the iconic Mattel doll.

Conceived through a partnership between Bucket Listers and Mattel, the giant behind Barbie, this collaboration is led by Derek Berry, a Miami native and president of Bucket Listers experiences. Following the success of previous pop-ups like Saved by the Max and the Peach Pit, this collaboration promises a unique culinary experience, following in the footsteps of previous Malibu Barbie initiatives in New York, Chicago, and the Mall of America.

You can then be transported to the sun-drenched beaches of 1970s Malibu, where every detail reflects the glamorous era of the doll. Designed by Master Chef semi-finalist Becky Brown, the menu boasts a fusion of flavors from Southern California, with delights such as rainbow pancakes, avocado toast, and cauliflower bowls, ensuring an enticing experience for all palates, including children with a dedicated menu.

The atmosphere is Instagram-worthy, complete with giant Barbie boxes, retro furnishings, and the signature pink shades synonymous with the brand. Interactive experiences await, from skating to disco-themed evenings, for guests of all ages.

Meanwhile, if after enjoying your Mattel-branded coffee you decide to buy a house in Miami, developers seem to all agree: Wynwood is a winning bet. Similarly to other areas of Miami, developers are descending on the neighborhood and have over a dozen projects in various stages of development. An analysis by The Real Deal has found that over 2,200 apartments and condominiums are coming to Wynwood. A number destined to increase.

Developers have spent just under $300 million solely on land acquisitions between March 2021 and May 2022. By comparison, approximately $366 million was spent on land in Brickell and $555 million in Edgewater.

Here are the planned projects in Wynwood:

Ironstate Development and Brookfield Properties, 26 Northeast 27th Street

Ironstate Development, based in Hoboken, New Jersey, led by brothers David and Michael Barry, along with Brookfield Properties, have proposed a complex of 289 apartments on the former Art by God site. Last year, they paid $15.6 million for the entire assemblage at 26 and 60 Northeast 27th Street, and 25 and 61 Northeast 26th Street.

Gamma Real Estate, 2825 Northwest Second Avenue

Gamma Real Estate from New York took control of the site from The Collective, after making a credit bid. Current plans for the property include 180 units, ranging from studios to six-bedroom apartments.

Clearline Real Estate, 2000 and 2021 North Miami Avenue

Clearline, led by Jenny Bernell, envisions a mixed-use project, likely including rentals. The undeveloped property is zoned for over 300 units.

Fifield Companies, 37 Northeast 27th Street

Fifield plans an eight-story residential building with 210 units and approximately 10,000 square feet of commercial space and a pedestrian walkway. The Chicago-based developer paid $19.5 million for the property in January. Construction is expected to be completed in 2024.

L&L Holding Company and Carpe Real Estate Partners, 31 Northwest 29th Plaza

New York developers L&L Holding Company and Carpe Real Estate Partners plan a mixed-use project that would span over 1 million square feet and include 509 units.

Rilea Group and Promanas Group, 94 Northeast 29th Street

Rilea Group and Promanas Group plan to build 127 rentals at 94 and 100 Northeast 29th street. Plans call for a 12-story project with a rooftop restaurant and a pool bar. The developers bought the properties for $12.2 million last year.

TriStar Capital, Related Group, Lndmrk Development, Tricera Capital, 2700 Northwest Second Avenue

TriStar Capital, Related Group, Lndmrk Development, and Tricera Capital plan to build more than 300 units. The developers paid $26.5 million for the 1.3-acre development site last year. Construction could begin in August.

PMG and Greybrook Realty Partners, 2431 Northwest Second Avenue

PMG and Greybrook Realty Partners secured a $142.3 million construction loan last year for their planned 318-unit, 10-story mixed-use project.

Related Group, 2130 North Miami Avenue, 38 Northwest 22nd Street

Related Group plans to build a pair of 12-story buildings with 317 apartments and 534 parking spaces.

Kushner Companies, Block Capital Group, 127 Northwest 27th Street

Kushner Companies and Block Capital Group are building a project that will have 152 apartments and 232 parking spaces, an outdoor pool deck, and a lounge. It’s expected to be delivered in the third quarter of this year.

Sources and Photos: Eater, The Real Deal, Instagram

Luxury Brands Spark Renaissance on New York’s Fifth Avenue

By Columbus International,7 February 2024

In the summer of 2020, a headline boldly proclaimed, “New York City is dead forever,” echoing the grim reality of a pandemic-stricken world. However, Jerry Seinfeld’s dismissive response of “Oh, shut up,” has proven prescient more than three years later. Nowhere is this more evident than in a pivotal two-block stretch of Fifth Avenue in New York City. This iconic Manhattan shopping corridor has become a battleground for the world’s leading luxury brands, each vying for prime real estate. Recent months have seen a flurry of activity, with entities affiliated with Gucci, Prada, and Louis Vuitton parent companies shelling out nearly $2 billion combined to secure coveted spots from 58th to 56th street. Additionally, Louis Vuitton’s parent company is eyeing 745 Fifth Avenue, further emphasizing the area’s allure, nestled near the Plaza Hotel and Central Park. While commercial property markets elsewhere struggle, these blockbuster deals shine as beacons of hope. Despite challenges like soaring borrowing costs and economic uncertainty, luxury brands are betting big on New York City’s enduring appeal. Their resurgence signals a rapid recovery, particularly in Manhattan’s upscale retail sector, with billionaire-backed conglomerates seizing the moment to solidify their presence both locally and globally. Michael Marks of Cushman & Wakefield notes the significance of these tenants’ long-term commitment to iconic New York locales, emphasizing their strategic move to control their destiny amidst market fluctuations.

Madelyn Wils, chief adviser for the Fifth Avenue Association, underscores the pivotal role of these investments in revitalizing tourism and cementing New York’s status as a premier luxury destination. Behind these landmark transactions stand titans of industry such as Bernard Arnault, Miuccia Prada Bianchi, and François Pinault, whose vast fortunes empower them to leave an indelible mark on Fifth Avenue. The rapid pace of these acquisitions, completed within weeks, underscores the urgency and confidence driving these deals. While challenges persist, including ongoing disputes and financial complexities, these transactions herald a new chapter for high-street retail in New York City. Marc Holliday of SL Green Realty Corp. heralds this resurgence as “very, very exciting for the city,” signaling a promising future for Fifth Avenue and beyond. With traditional real estate investors sidelined by market volatility, luxury conglomerates wield significant influence, leveraging their deep pockets and global vision to reshape urban landscapes. For brands like LVMH and Kering, owning prime real estate is integral to their global strategy, mirroring their successful endeavors in other cosmopolitan hubs like Paris and Tokyo. Indeed, as LVMH’s Chief Financial Officer Jean-Jacques Guiony affirms, being a landlord affords these luxury giants a unique opportunity to reimagine and elevate the retail experience, a sentiment echoed by their ambitious projects around the world. As they continue to invest in iconic addresses like Fifth Avenue, luxury brands are not just shaping skylines but also transforming the very essence of luxury retailing.

Source: Bloomberg